On Social Media, Retailers Redefine User Engagement

The intersection between brands' trying to capitalize on social
media activity and people's expectations of some privacy has grown
increasingly murky.

Shereen Way did not think twice about posting a photo on
Instagram of her 4-year-old daughter wearing a green dress and pink
Crocs sandals.

Crocs, which Ms. Way had identified with a hashtag, pulled the
snapshot from Instagram and featured it in a gallery of user-
generated photographs on its website. The company had not asked Ms.
Way for permission, and she was not aware that Crocs had used the
photo until a reporter contacted her on Instagram.

"No one reached out to me," Ms. Way, 37, of Pearl River, N.Y.,
said in a phone interview. "I feel a little weirded out."

Much later, Crocs sought her permission.

Instagram and other social sites like Pinterest and Twitter have
long been sources of selfies and candid shots that retailers and
other companies mine for "consumer engagement," a broad industry
term that can mean anything from Facebook likes to hashtags for
brands.

But as the practice of promoting user-generated content has
intensified, the intersection between brands' trying to capitalize
on social media activity and people's expectations of some privacy
(even as they post personal photos on public platforms like
Instagram) has grown far more murky.

No one, it seems, wants to actively police traditional rights
issues like those presented in Ms. Way's situation. Using photos
like her daughter's generally requires getting the consent of the
person who posted the original content before it can be reused
elsewhere.

"This is a new area, and we want to make sure our customers are
dotting the 'I's' and crossing the 'T's,"' said Sharad Verma, the
chief executive and co-founder of Piqora, which helps brands curate
user-generated content from sites like Instagram. "It's important
for brands to be very upfront and transparent about how the photos
are being used."

For its part, Instagram, which has about 300 million users, says
it is responsible only for how brands use consumers' photos posted
on its site.

The United States Federal Trade Commission, which polices unfair
or deceptive practices, could step in if Instagram violated its own
privacy policy or promises made to consumers in its terms of
service. But consumers have little recourse on their own, other than
pursuing costly legal action.

The lack of oversight comes at a time when brands and social
media sites are strengthening their relationships in efforts to
generate ad revenue and lock in loyal consumers. Instagram, in
particular, has been working to open its photo feed to all
advertisers, big and small, across the globe.

Privacy groups and consumer advocates continue to voice concerns
about how companies use data culled from social media to endorse or
sell products. In 2012, Facebook, which owns Instagram, reached a
settlement in a class-action lawsuit over its "sponsored stories,"
or its practice of turning a users' likes into ads tailored to their
friends. The court approved the settlement in 2013, but it is
currently being appealed.

Still, in the age of the selfie, many users enjoy getting a
broader audience for the photos, opinions and tastes they share
online.

"I'm always really excited," said Liza Day Penney, a 23-year-old
from Dayton, Tenn., whose photo appears on American Eagle
Outfitter's website. She estimated that the company had used more
than half-a-dozen of her photos, and even once sent her a $25 gift
card.

"That was one of the things, too, that really encouraged me to
continue to post and continue to tag and hashtag them as I wear the
clothes," she said.

In many cases, getting consent from a user can be as casual as a
comment underneath the photo itself.

"We love your pic!" the Crocs Instagram account writes on many of
the user-generated snapshots featured on its website, followed by a
request to feature the photo elsewhere. …

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